MDS Provides 2008 Financial Guidance at Annual Investor Day

    TORONTO, Feb. 21 /CNW/ - MDS Inc. (TSX: MDS; NYSE:   MDZ), a leading
provider of products and services to the global life sciences markets will
hold its 2008 Annual Investor Day in New York today beginning at 9:00 am EST
and announce its guidance for full year 2008.
    MDS's financial guidance for 2008 builds off a successful 2007 when MDS
completed its transition to a global life sciences company, and drove a 17%
increase in net revenues and 88% growth in adjusted EBITDA.
    "Our 2008 earnings guidance demonstrates our continued confidence in our
ability to drive enhanced performance in our top and bottom line" said Stephen
P. DeFalco, President and CEO. "Our continued focus on globalization,
innovation and operational excellence to serve our customers will be important
drivers in creating shareholder value at MDS in 2008 and beyond."

    2008 Guidance ($US Millions, except per share amounts)

                             2007 Actual Results            2008 Guidance
    Total Revenues                 $1,210                  $1,350 - $1,410
    Net Revenues                   $1,119                  $1,250 - $1,300
    Adjusted EBITDA                 $145                     $175 - $185
    Adjusted EPS                   $0.34                    $0.37 - $0.43
    Income (loss) from
     continuing operations         ($33)                      $55 - $65
    Basic EPS                     ($0.25)                   $0.45 - $0.53
    Capital Expenditures            $71                       $65 - $75
    Effective Tax Rate              41%                          0-10%

    The underlying assumptions used in preparing MDS 2008 guidance are
outlined below.
    MDS expects net revenue growth for 2008 to be in the range of 12%-16%
based on: the net impact of the Molecular Devices acquisition, the divestiture
of the MDS Nordion external beam therapy and self-contained irradiator product
lines, and increased revenues across all three business units due to expected
market growth and improved sales execution. Total revenue is a GAAP measure
that includes a forecast for reimbursement revenues, which are then excluded
from the calculation of net revenues.
    MDS expects adjusted EBITDA to grow at 21%-28% and to be in the range of
$175-$185 million driven by: productivity improvements, particularly in MDS
Pharma Services, revenue growth across MDS, and the full year impact of the
acquisition of Molecular Devices. For 2008, the adjusting items used in
calculating adjusted EBITDA include the loss on the sale of MDS Nordion's
divested product lines and certain other items.
    Adjusted earnings per share (adjusted EPS) for 2008 are expected to be in
the range of $0.37-$0.43. In addition to the adjusting items outlined above,
adjusted EPS also excludes an expected 2008 gain on deferred taxes associated
with future Canadian income tax rates.
    Income from continuing operations and basic EPS for 2008 primarily
reflects adjusted EBITDA growth and the income tax gain described above.
    Capital expenditures in 2008 are expected to remain level with 2007.
    The expected effective tax rate in 2008 is in the range of 0-10%
reflecting an expected gain associated with the reduction of future Canadian
income tax rates, the use of foreign tax loss carry-forwards and research and
development investment tax credits.
    For information on MDS's 2007 actual results, please refer to the 2007
Annual Report available on the MDS website at

    Webcast Details

    MDS's Investor Day will be webcast live beginning at 9am EST today,
February 21, 2008. To access the live webcast, please visit the MDS website at The audio replay of the webcast and the presentation slides
will be archived in the "For Investors" section of the MDS website under
"Webcasts & Presentations".

    Caution Concerning Forward-Looking Statements

    This document contains forward-looking statements. Some forward-looking
statements may be identified by words like "expects", "anticipates", "plans",
"intends", "indicates" or similar expressions. The statements are not a
guarantee of future performance and are inherently subject to risks and
uncertainties. MDS's actual results could differ materially from those
expressed in the forward looking statements due to these risks and a number of
other factors, including, but not limited to, successful implementation of
structural changes, including restructuring plans and acquisitions, technical
or manufacturing or distribution issues, the competitive environment for MDS's
products, the degree of market penetration of its products, the ability to
secure a reliable supply of raw materials, the strength of the Canadian and US
economies, the impact of the movement of the US dollar relative to other
currencies, particularly the Canadian dollar and the euro, uncertainties
associated with critical accounting assumptions and estimates, and other
factors set forth in reports and other documents filed by MDS with Canadian
and US securities regulatory authorities from time to time, including MDS's
quarterly and annual MD&A, annual information form, and annual report on
Form40-F for the fiscal year ended October 31,2007 filed with the Securities &
Exchange Commission.
    Also note that all financial data is now shown on a US GAAP basis. MDS
converted to US GAAP reporting with the filing of its 2007 annual report and
financial statements on January 29, 2008.

    Use of Non-GAAP Financial Measures

    The use of non-GAAP measures including terms such as net revenues,
adjusted EBITDA, and adjusted EPS are used to explain the operating
performance of the Company. These terms are not defined by GAAP and MDS's use
may vary from that of other companies. MDS uses certain non-GAAP measures so
that investors and analysts have a better understanding of the significant
events and transactions that have had an impact on results or may have an
impact on MDS's financial outlook. MDS provides a description of these
non-GAAP measures and a reconciliation of these non-GAAP measures for 2007
actual results to GAAP financial results in the MD&A of its 2007 annual
report. Where MDS has provided 2008 guidance using non-GAAP measures, these
are reconciled to a corresponding measure based on GAAP and reconciliations
are available on the MDS website.

    About MDS

    MDS is a global life sciences company that provides market-leading
products and services that our customers need for the development of drugs and
the diagnosis and treatment of disease. We are a leading global provider of
pharmaceutical contract research, medical isotopes for molecular imaging,
radiotherapeutics, and analytical instruments. MDS has more than 5,500 highly
skilled people in 29 countries. Find out more at or by calling
1-888-MDS-7222, 24 hours a day.

For further information:

For further information: Kim Lee, Director, Investor Relations, MDS
Inc., (416) 675-6777 x 32606,; Lesley Beneteau, Manager,
External Communications, MDS Inc., (416) 675-6777 x 32265,

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